May 17, 2023

Pros and Cons of the Metaverse

The Implications of the Latest Phase of the Internet

Over the past decade, computer technology has evolved exponentially. It has made our lives easier, and at the same time, catapulted us thousands of years into the future. Many ideas that were once science fiction are now a reality. The metaverse may very well be the next step in the evolution of the internet. However, as we swiftly progress toward the next paradigm of computing, we must understand the benefits and drawbacks that the metaverse will bring.

What Is the “Metaverse”?

The term "metaverse" was first coined by Neal Stephenson in his 1992 science fiction novel Snow Crash, in which he imagined lifelike avatars meeting in realistic 3D buildings and other virtual reality scenarios. Since then, the metaverse has become a catch-all phrase for any shared digital space.

Today, Stephenson’s fictional world is growing closer to reality, as the metaverse is now a term used to describe a shared virtual space that is made up of multiple technological elements, including augmented reality (AR), virtual reality (VR), and video. Some experts describe it as a 3D model of the internet that would exist parallel to our physical world and would enable day-to-day activities such as work, gaming and learning to take place through a virtual, immersive experience.

In the truest sense of the term, the metaverse would be accessible through a single gateway and each user would have an avatar that they could use to interact with others and live out their digital lives in this virtual world.

Although we have seen glimpses of a world such as this, the true metaverse is not here yet. We are still in the early, building phases of the metaverse, and, as a result, there is no single definition of the metaverse because nobody knows what it will look like. Just like it would have been difficult to describe and predict the internet as it exists today back in the 1970’s, it’s difficult to predict what the metaverse will evolve into in the coming decades.

The Elements of the Metaverse

Generally speaking, the metaverse is made up of a combination of virtual reality (VR), which is characterized by persistent virtual environments that exist even when one is offline, combined with augmented reality (AR), which blends features of both the digital and physical worlds. It includes a digital economy in which users can design, buy, and sell products, and is interoperable, allowing users to move virtual objects, like clothes or cars, from one platform to another, under the more idealized conceptions.

The Metaverse Today

The idea of the metaverse gained international attention in 2021, with Facebook’s announcement of the rebrand of its parent company to “Meta”. Meta’s CEO, Mark Zuckerberg, also stated that they would spend $10 billion dollars and hire 10,000 employees in Europe to build a metaverse. Meta currently has a line of products called Horizon Worlds, a social VR application that allows users to connect in highly immersive 3D worlds. They have also developed hardware that enables users to enter and interact within their Horizon communities interactively, such as their Oculus Quest 2 product. Horizon Worlds' monthly user base has expanded by 10x in three months to 300,000 people since it was launched in the US and Canada in early December, showing there is an appetite for immersive virtual worlds from the general public.

Meta is not the only company currently investing in building the metaverse. Microsoft has built Mesh for Microsoft teams, which is intended to help organizations and consumers boost remote collaboration and deliver immersive training and communication solutions. Microsoft accomplished this by creating a virtual space for real-time collaboration that participants can access via their mixed reality glasses - HoloLens 2, virtual reality (VR) headsets, smartphones, tablets, or PCs.

Microsoft has been investing aggressively into metaverse technology, with their recent acquisition of gaming company, Activision, which owns popular games Call of Duty and World of Warcraft, in a deal worth $68.7 billion. Microsoft’s CEO Satya Nadella stated they made this move because this deal would provide “the building blocks for the metaverse”. Other companies like Zoom, Alphabet, and Google also have metaverse products in the works, although no official announcements have been made as of yet.

The metaverse industry is currently set to become an $800 billion market by 2024, so it is no wonder that several tech giants have been making large investments in this space.

The Next Paradigm of Computing

Although the metaverse is still in its early stages, with only a few platforms available for general use, its virtual world promises endless possibilities for employment, gaming, social interaction, and economic growth. Some other potential use cases for the metaverse are the ability for users to purchase and monetize real estate, create games and other VR experiences, shop for real and virtual products, attend concerts, and much more.

While the metaverse promises a lot, it is yet to be seen if companies will be able to work together to create this interconnected 3D virtual reality as a lot of advancements still need to occur. As various companies take strides towards creating the metaverse, it is important to understand the pros and cons that this technology will bring.

The Case for the Metaverse

Facilitates Remote Work

Businesses across the globe have had to adapt to a new way of working due to the coronavirus pandemic. However, working remotely sacrifices the shared connection that people experience with in-person work. According to a report by User Guiding, remote hiring, training, and onboarding of new hires were employers’ largest recruitment challenges amidst the coronavirus pandemic, with 49.7 percent of businesses stating employee engagement as the greatest challenge.

The applications of the metaverse for workplace connection would facilitate a better connection between employees and would allow managers to effectively communicate with their teams while reading their body language through virtual interactions. Furthermore, by keeping track of team productivity through their distinct avatars, employers may better handle issues such as productivity time theft at work.

Decreased Carbon Emissions

It is also possible that emissions in some aspects of our lives will be mitigated by the metaverse. The metaverse is designed to be a home for a lot of the events and activities that currently take place in-person, and by moving a lot of these events online, there is the potential to significantly lower carbon emissions.

By organizing concerts in virtual environments, for example, environmental expenses associated with travel—particularly air travel—will be decreased. Commuting emissions may also be reduced, as office premises will be housed in the metaverse. As a result, net emissions can decline and the metaverse's overall environmental impact will be reduced.

Improvements to Healthcare Services

According to a survey of 398 healthcare professionals that was performed after the pandemic, about 20 percent of patient appointments will still be conducted via telemedicine, compared to 2 percent before the COVID-19 outbreak. The metaverse could usher in the next stage of telemedicine, better facilitating physical and mental health treatments where patients can be diagnosed and treated with the help of VR and AR technologies. It could also facilitate interactive medical learning as medical education would become more engaging with the use of technology, especially where hands-on skills are essential.

The Case Against the Metaverse

Privacy & Security

Even though businesses and organizations continue to improve their IT security systems, data privacy and security have long been a concern for users of any online environment. Submerging into the metaverse will necessitate the creation of new security procedures to keep up with the metaverse's ever-expanding nature.

There is also the concern about the companies behind the metaverse collecting a large amount of data about their users, posing security and privacy concerns. Furthermore, this information has the potential to be gathered, sold, and utilized for intrusive internet advertising, identity theft, and other cyber-related crimes. Meta, specifically, has been the target of investigations all over the world for alleged internal policies that downplay or ignore how their social media platforms have harmed their users' interests, and these concerns could be inherited into its future platforms.

Legal Ambiguity

The metaverse is bound to bring many users together, making it a terrific location to connect and exchange information. However, it also puts users at risk if there are no regulations governing its space. Therefore, identifying jurisdiction, enacting regulations, and pinpointing who has the power to enforce laws will be crucial in ensuring that the virtual world is safe and secure for all users.

Potential for Addiction

The metaverse could be highly addicting as it would provide an alternative to reality. High internet users were more likely to be socially isolated, according to a 2018 study published in the American Journal of Educational Research. Given the metaverse's potential, it could exacerbate this problem and lead to the cascading effects of anxiety and depression. Builders of the metaverse must incorporate digital well-being tools to prevent users from suffering from addiction.

The Verdict

The metaverse has the potential to forever alter how we work, play, and socialize. It has the potential to facilitate remote work, decrease carbon emissions, and improve healthcare services. However, to ensure the well-being of all as we move towards this future, we need to ensure that concerns around privacy, legal issues, and addiction are addressed.

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Is Canada Really in a Recession?

23 Dec, 2023

Context A CBC News article discussed the possibility of the Canadian economy heading into a recession, or whether the country has already passed that threshold. The article discussed this possibility based on slowed growth, high inflation, and the Bank of Canada’s continued interest rate hikes. Analysis A recession is a significant reduction in economic activity that occurs over a length of time, usually months or years. One of the most accepted definitions of a recession comes from the economist Julius Shiskin in 1974, who identified the threshold to an economic recession as two consecutive quarters of declining GDP, although economists often argue about the comprehensiveness of this measure. The causes of a recession can be quite complicated and have many contributing factors. Some common examples include a sudden economic shock such as the recent COVID-19 pandemic, excessive debt, asset bubbles, inflation, deflation, or large technological changes. One major factor influencing the probability of an economic recession includes rising interest rates from the Bank of Canada, which has implemented the highest hike in the shortest amount of time in all of the bank’s history, raising the rate over eight times since 2022. The Bank of Canada increased interest rates in order to curb inflation since rising interest rates discourage taking on debt and spending. This further encourages companies to lower prices or slow inflation to increase demand. Currently, the Bank of Canada is keeping at the 5.0 percent rate but has said that further hikes are not off the table as inflation may continue to exceed acceptable rates. Increases in interest rates can certainly contribute to or precede a recession. In fact, the Bank of Canada has raised interest rates three times to slow inflation since the 1960s and all three times this action led to an economic recession. Current fears of a looming economic depression are also not unique to Canada, as following the COVID-19 pandemic, the global inflation rate increased to 8.73 percent in 2021. This was due to supply chain issues, as well as the effect of the Russia-Ukraine War creating rising food and energy prices, as well as general fiscal instability. A majority of the World Economic Forum’s lead economists agreed earlier this year that we could see the beginning of a global recession starting in 2023, which would certainly affect the Canadian economy. The article also discusses the Canadian economy’s slowed economic growth, as the GDP has stagnated in the second quarter of this year. However, it suggests other factors may explain the decrease, including striking port workers in British Columbia, and the resulting negative effect on economic activity. An RBC report mentions how on a per-person GDP basis, there has already been a decline for four straight quarters despite a surge in population growth, and concludes overall predictions for GDP growth do not look promising despite local factors including Canadian wildfires and strikes. They also point to a 0.5 percent increase in the unemployment rate over the past few months, which has historically tended to indicate a looming recession.

Ottawa Mayor and Lansdowne Park

21 Dec, 2023

Context The City of Ottawa Mayor, Mark Sutcliff released a statement about a revised plan for the redevelopment of Lansdowne, an urban public park containing historic landmarks and commercial venues. The project includes the demolition of a sports arena complex, stadium stands, and the building of a new event center, residential units, and retail space. Despite suggesting the new plan has addressed the concerns of residents, many issues remain. Analysis The City of Ottawa and the Ottawa Sports and Entertainment Group (OSEG) have been in partnership to develop Lansdowne since 2012 and finished an original redevelopment of the park back in 2014. A few years later in 2019, the financial sustainability of the park came to the city council’s attention, and in 2020 the partnership was extended another 10 years with direction to develop a new plan to revitalize Lansdowne. Consultation with community members started in 2020, with the original concept released last year in 2022, and a revised version released this month. Community feedback was acquired through various platforms including public information sessions, an open email for feedback, and public surveys. A summary report of that feedback was published on October 6th, which highlighted the six most common themes of community residents’ concerns. The first concern was related to the size and number of the multiple high-rise apartments which were designed to exceed 30 floors. In the new plan , they have removed one of the three planned buildings, with fewer total units in each, and only one tower with the potential to be built at 40 stories. Residents were also concerned about the loss of greenspace due to the new event center construction. Many people suggested they wanted that greenspace allocated elsewhere, or alternatively, an accessible greenspace roof on the event center. Although in the original plan the city had conceptualized a greenspace rooftop on the event center, this was scrapped in the new plan as it was deemed too expensive to maintain. Respondents wanted a restriction of vehicles to the premises to promote pedestrian safety, a concern that has existed since Lansdowne was first renovated back in 2014. They also wanted more public transportation infrastructure to and from the park, whether that is the local city buses, trains, or cycling infrastructure to reduce congestion on connecting roads. Relatedly, residents also desired more accessible public use space from washrooms to water fountains to usable and free space for people to occupy. The new plan has reduced the number of parking spaces for the residential buildings to meet the Bylaw limit of 0.4 spaces per unit, down from 739 to 336 spaces, while they added 36 new spaces for the event center. In terms of accessible public space, the new plan includes 27,000 square feet of space originally earmarked for the third residential building, now available for an unspecified “public realm.” Residents also wanted more local and less corporate or big-box businesses, to reflect the unique local community better. The new plan does suggest the amount of retail space has been reduced from 108,000 square feet to 49,000 square feet but does not directly address the desire to attract smaller, local businesses. Finally, there was also a concern about financial transparency of how the project is being funded and the resulting impact on the City. The Federation of Citizens Association (FCA) which represents over 70 community groups voted unanimously to oppose the new plan, which comes with a very costly price tag of $419 million, increased from $332 million of the first plan. They cite that the debt comes at a time when the transit system is facing major issues, and the city is struggling with a housing affordability crisis.

Danielle Smith - Conflict of Interest

20 Dec, 2023

Context Newly elected Premier of Alberta Danielle Smith has defended her cabinet which is coming under fire over conflict-of-interest concerns. Environment and Protected Areas Minister Rebecca Schulz’s husband, Cole Schulz , may be lobbying the government in the areas that the Minister works in. Cole Schulz's firm is working on removing the protection of a threatened caribou range to make room for the oil and gas industry – which has raised concerns over who has Minister Schulz’s ear. Analysis The company that Cole Schulz is a partner with, Garrison Strategies, was hired by the Explorers and Producers Association of Canada and is working to influence the government on the issuing of reclamation certificates for oil and gas sites. The lobbyists are working to gain more access to protected caribou habitats to expand the oil and gas industry. They are hoping to “ address the moratorium on tenure in caribou regions ” which would effectively give them better access to land and investments. The Little Smoky and A La Peche herds in northwest Alberta were protected by a moratorium in 2013 which stopped the granting of new energy leases in this area. At the time, 95 percent of the herd’s range was heavily damaged. Phillip Meintzer of the Alberta Wilderness Association found that though records show that Garrison didn’t contact Environment and Protected Areas directly, the firm’s causes are “ too close for comfort ”. Meintzer also notes that as Garrison works on opening the protected caribou land for Alberta Energy, Environment and Protected Areas should be working on a protection plan for the federally and provincially designated threatened animal . Minister Schulz is working closely with the ethics commissioner, however, Danielle Smith confirmed that “ the ethics commissioner has looked at it, given guidance and there’s no violation [of the Conflicts of Interest Act]”. Cole Schulz also indicated that his firm wasn’t aware that Minister Schulz breached the Act at any time. Meintzer suggests that this situation “ calls for a further look ” from a third party. Sources https://globalnews.ca/news/9988998/alberta-premier-danielle-smith-rebecca-schulz/